The European Commission has outlined stricter carbon emissions targets for car manufacturers and plans to boost development of electric cars in Europe.Stricter carbon emissions targets for car manufacturers are expected to increase electric car sales, and cobalt is a key component in the batteries powering these cars.
The EU plan was presented on Wednesday, November 8, and includes a carbon credits system, potential fines and incentives for car manufacturers to shift to electric vehicles (EVs). According to INN Daily, demand for lithium-ion batteries is expected to reach 750 GWh by 2026 from just 80 GWh this year. This is another win for cobalt.
According to the firm Benchmark Mineral Intelligence, cobalt supply will need to reach 78,000 tonnes in 2021 from 48,000 tonnes last year in order to meet this increasing demand. The company expects that number to increase to 180,000 tonnes by 2026.
